Nifty, Bank Nifty and broader markets in general have broken yet another all-time high, and we maintain our bullish stance and we feel that markets will only break higher levels on the upside.
If you see, we have seen great movement on the upside in stocks across sectors and industries.
IT, FMCG and specially the Banking sector have given superior returns in the past 1 week.
Nifty & Bank Nifty Outlook:
Both Nifty and Bank Nifty have returned good returns in the past 1 week and we expect the bullish sentiment and trend to continue.
Both Nifty and Bank Nifty have strong support zones near the 17,400 and 37000 levels which further pushes the case for a bullish week ahead
The FMCG sector has been going from strength to strength over the past 6-8 weeks now, it shows how investors are flocking to this sector in times of stretched valuations and so much uncertainty. We expect the bullish sentiment and trend to continue in this sector.
Just like the FMCG sector, the IT sector too has experienced windfall returns over the past 6-10 weeks and has broken a fresh all time high, this is one evergreen sector in our opinion providing great returns and more importantly stability to the portfolio.
NIFTY Pharma & Nifty Auto
Just like last week, we maintain a mildly bearish stance on both these indices as the charts look weak.
Nifty current month future closed with a premium of 2 points to its spot. Next month's future is trading at a premium of 28 points.
We saw open interest addition of nearly 1.20% in Nifty and considering the price action it clearly hints strong buying during the week.
The following stocks saw OI build up with a corresponding increase in price, suggesting a bullish sentiment
The following stocks saw OI build up with a corresponding decrease in price, suggesting a bearish sentiment
Top 5 recommendations for the next week
ESCORTS had given the breakout from the previous two importance resistance level on 14TH Sep 21. After breakout now it is has retraced to its support level , which can be a good opportunity to go long.
Reliance is trading near its previous resistence level , which will now act as a strong support. Therefore a good opportunity to initiate a long position.
Cipla has been consolidation after giving a breakout since quite some time now.It is around its support levels which suggests good positive momemtum is possible from here.
COLPAL is in the consolidation zone after a good move from previous support levels. Any sustainable move above 1755 levels will have a good buying opportunity.
TECHM is in the strong uptrend. After a good rally it is trading in the consolidation zone. Any sustainable breakout above consolidation zone we may see another upside rally.
(Gaurav Udani is Founder & CEO of Thincredblu Securities. He tweets @Udanii)